Are Payday Loans legal in Connecticut?
Short-term Payday Loans in Connecticut are illegal according to Conn. Gen. Stat. §§ 36a-563 et seq.. These documents also cap the APR at 12%.
Remember that regardless of this, there are other loan options available to cover your urgent expenses fast such as Installment Loans in Connecticut and Personal Loans in Connecticut. If you own a vehilce, you can also use its title to secure a Car Title Loan in CT and get instant cash for any needs.
As we can see, The Connecticut Department of Banking, 260 Constitution Plaza Hartford CT 06103, (860) 240-8299 caps all short-term loans at 30.03% APR.
For other details and information on Payday Loans in Connecticut contact The Connecticut Department of Banking, 260 Constitution Plaza Hartford CT 06103, (860) 240-8299.
Why are Payday Loans illegal in Connecticut?
The Government considers Payday Loans too expensive and often associated with lenders’ predatory practices. That’s why in Connecticut Payday Loans are illegal according to Conn. Gen. Stat. §§ 36a-563 et seq. which caps the APR at 30.03%.
It caused most lenders to stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.
Сonnecticut Payday Loan laws
Payday Loans in Connecticut share the same characteristics as short-term cash advances in other states but due to high costs and short repayment terms they are prohibited in Connecticut. Lenders can’t legally operate because of the rate cap set by the authorities. But we can let you compare other options available in Connecticut.
If you haven’t succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in Connecticut: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.
Connecticut Payday Loans online laws
Usually, the state’s Payday Loan laws concern both storefront and online lenders. Online lenders should also operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to The Connecticut Department of Banking, 260 Constitution Plaza Hartford CT 06103, (860) 240-8299 for law violations.
For years, the Attorney General’s office has worked hard to eliminate all forms of payday lending in Connecticut. However, not all the efforts were successful as usurious loans are still available online (regardless of the fact that storefront payday lenders are no longer available in Connecticut).
Does Connecticut law allow Payday Loans for bad credit borrowers?
The average credit score in Connecticut is 690, placing it in the good range. But it doesn’t mean that those who have worse credit can’t apply for the necessary cash advance in Connecticut.
- First of all, there’re some companies in Connecticut providing similar Payday loan services to borrowers with both good and bad credit scores.
- Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
- Find out how to improve your credit score and do your best to do it fast.
- Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.
Connecticut Payday Loans news – latest changes
Payday lending has become really important recently as a convenient, though expensive and controversial way for borrowers in need to access instant cash advance.
However, lawmakers’ usury concerns led them to cap Payday Loans in Connecticut at 36% APR. The measure also syncs up this state’s payday-loan guidelines with the federal Military Lending Act adopted the previous year. That act aims to prevent U.S. servicemen and women from becoming victims of payday-loan abuses.
Connecticut’s Payday Loan law also concerns debt collection practices and prohibits lenders from any criminal actions against customers.
Connecticut Payday Loans historical background
Payday Loans have always been prohibited in Connecticut as there is no law making them legal.